RBI 8 per cent bond scheme not closed, interest rate on instrument lowered to 7.75 per cent, says Fin Min

New Delhi, News Nation Bureau | Updated : 02 January 2018, 02:37 PM
Reserve Bank of India - File photo
Reserve Bank of India - File photo

The Finance Ministry on said RBI Bonds Scheme has not been closed but the interest rate on such papers lowered to 7.75 per cent.

Yesterday, the government notified that the 8 per cent GoI Savings (Taxable) Bonds, 2003 "shall cease for subscription with effect from the close of business on Tuesday, January 2, 2018."

"The 8 per cent Savings Bonds Scheme, also known as RBI Bonds Scheme, is not being closed. 8 per cent Scheme is being replaced by 7.75 per cent Savings Bonds Scheme," Economic Affairs Secretary S C Garg said in a tweet.

These taxable bonds are meant for individual other than Non-Resident Indians with no maximum limit for investment. In 2003, the government came out with bonds offering 8 per cent interest to encourage retail investors to invest.

The bond was open for subscription from April 21, 2003, and had a fixed tenure of six years. There was no upper limit for investment. 

First Published: Tuesday, January 02, 2018 02:25 PM
For all the latest Business News Download the News Nation App available on Android and iOS.